DAILY MARKET ANALYSIS 16-09-2022

The US Dollar continues to find strength ahead of next Wednesday’s Federal Open Market Committee (FOMC) meeting. It is making or nearing many historical peaks across markets. In the US, a rail strike was averted after a deal was struck with unions. Another supply chain blockage had the potential to further undermine an economy already facing monetary policy headwinds.

Stocks

September S&P 500 futures (ESU22) are trending down -1.02% this morning after three major US benchmark indices resumed declines during the regular session as a variety of economic data failed to change the expected path of aggressive tightening by the Federal Reserve amid growing fears of a global recession.

Currencies

• EUR/USD has declined to the lower limit of its short-term trading range. A four-hour close below 0.9950 could bring in additional seller.

• GBP/USD has broken below the 1.1406 low, and economists at MUFG Bank see that as a sign that the pair could nosedive towards the all-time low of 1.0520.

•  USD/JPY pair attracts some dip-buying near the 142.80 area on Friday and steadily climbs to a fresh daily high during the early European session. The pair is currently trading around the 142.65-142.70 area and draws support from a goodish pickup in demand for the US dollar.

•  AUD/USD pair stages a modest bounce from over a two-month low touched during the Asian session on Friday and recovers a part of the previous day's losses.

Cryptos

Meme-inspired cryptocurrency Dogecoin (DOGE) is now officially the second largest proof-of-work (PoW) crypto in terms of market cap, following the Ethereum network's proof-of-stake upgrade on Sept. 15.

Commodities

Gold: failed to break above $1,800 in August, with the downtrend continuing. Key supports of $1,700 and $1,675 have been broken. Strategists at ANZ Bank expect XAU/USD to dive towards $1,600.

Up Ahead – Monday 19-09-2022

•          USD   NAHB Housing Market Index

*The information presented above is intended for informative and educational purposes, should not be considered as investment advice, or an offer or solicitation for a transaction in any financial instrument and thus should not be treated as such. Past performance is not a reliable indicator of future results.